Fundamentals of Economics

Multiple choice

6. Loopholes are ways individuals and corporations (best answer)

a. contribute to the funding and stability of government because corporations are people my friend*

b. find a way to pay their fair share

c. practice tax evasion

d. practice tax avoidance * see page 250, first paragraph

7. When altering the incentives so that people take account of negative effects of their actions, we are

a. shifting more incidence on the producer

b. closing loopholes

c. internalizing the externality

d. social engineering

8. The proposition that private parties can bargain without cost over the allocation of resources and solve problems on their own

a. Blue Sky Laws

b. Coase theorem

c. Efficient Market Hypothesis

d. Unio Mystica

9. Cable TV is an example of a good that is

a. is excludable but not rival in consumption

b. both excludable and rival in consumption

c. not excludable and but rival in consumption

d. not excludable and not rival in consumption

10. Economic reports released during the first week of the month in The United States

a. reflect employment data

b. reflect inflation data

c. reflect consumer confidence data

d. reflect production data